Risk Warning

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Prime Markets in the Press - Bellway (BWY)

08/12/2010

UNLIKE many exploration and production groups, Premier is trading profitably. Premier is a relatively lowly rated oil company in terms of current production and proven and probable assets. We believe that it will be re-rated on successful drilling results.
In June, it was reported that the Catcher discovery, which is 35 per cent owner by Premier, in the UK central North Sea is likely to contain up to 150 million barrels of oil, possibly the largest North Sea find in a decade. At the end of June, PremieADVERTISEMENT r announced Catcher East drilling success and raised its resource range.

The company is an attractive bid candidate, with Korean state oil group, KNOC, rumoured to be interested in making further acquisitions after its purchase of Dana Petroleum. KNOC is believed to have a target to increase production; Premier produces 44,000 barrels a day, which could double over the next two years. The combination of growing production profile and an attractive drilling programme makes Premier a bid target. Premier itself has £600 million in cash and undrawn bank facilities, and is in a strong position to buy smaller North Sea companies, or acreage.

Premier Oil
1,938p +23p
Scotsman says BUY

BROKER SNAPS:

BELLWAY is "trading at a big discount to its net asset value", according to Prime Markets. Head of dealing Richard Curr said: "The shares look very attractive, with factors such as the encouraging outlook and perceived 'levelling out' in consumer confidence all adding to a solid argument for an increase in the rating."

Bellway
612.5p +54.5p
Broker says BUY


ANALYSTS at Shore Capital have downgraded their recommendation on Britvic from "hold" to "sell" despite a "solid set of results". The broker said: "The main areas of uncertainty, in our opinion, are the impact from ongoing input cost inflation, the VAT rise in the UK and a fragile Irish economy."

Britvic
477p +6.6p
Broker says SELL

 

The Scotsman

Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.